Peter answered yes. Let’s take a look at Peter’s situation.

  • 60-year-old Peter works full time.
  • His salary is $100,000/year and employer Super Guarantee contributions are $9,500/year.
  • Peter can contribute an additional $15,500 (before tax) to super and still be within his concessional contribution cap of $25,000/year.
  • Peter asks his employer to salary sacrifice $15,500/year. After taking into account concessional tax of 15%, Peter has $13,175 to invest in super.
  • With income tax savings, Peter’s take home salary reduces by just $9,703, despite salary sacrificing $15,500.
  • Peter uses $195,000 of his super to start a transition to retirement (TTR) pension.
  • He draws a pension of $9,703/year from his pension to replace the reduced salary.

Peter has $3,472 extra invested in super by using the transition to retirement strategy. Would you like to see how this strategy can work for you?

 

Attend an information session

Date: 01 April 2020

Time: 12.00pm-12.30pm or 5.15pm-5.45pm

Location: Brown Macaulay and Warren Boardroom

RSVP: 25 March 2020 – advice@bmwca.com.au or phone 07 5482 1266.

Alternatively contact our office to arrange an appointment.

Please refer to the ‘What is a transition to Retirement Income Stream’ fact sheet for further information.

Any advice in this article is general advice only and does not take into account the objectives, financial situation or needs of any particular person.  It does not represent legal, tax or personal advice and should not be relied on as such.  You should obtain financial advice relevant to your circumstances before making product decisions.  Where a particular financial product is mentioned, you should consider the Product Disclosure Statement before making any decisions in relation to the product and we make no guarantees regarding future performance or in relation to any particular outcome.  Whilst every care has been taken in the preparation of this information, it may not remain current after the date of publication and Australian Unity Personal Financial Services Ltd (AUPFS) and its related bodies corporate make no representation as to its accuracy or completeness.  AUPFS is a registered tax (financial) adviser. Any tax advice contained in this presentation is incidental to the financial advice in it.  You should seek specialist advice from a tax professional to confirm the impact of this advice on your overall tax position. Nicole Burgess is an Authorised Representative of Australian Unity Personal Financial Services Ltd (ABN 26 098 725 145), AFS Licence No. 234459, of 271 Spring Street Melbourne VIC 3000

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